Toll launches takeover of Leading China based Global Freight Forwarder

Toll Group, one of the Asian region's leading providers of integrated logistics services, generating annual consolidated revenue in excess of A$7 billion and operating an extensive network across Asia has today announced an intention to launch a takeover for BALtrans Holdings Limited.

The takeover offer by Toll will be supported by the founding shareholders of BALtrans, who have committed to tender their shares into the offer. This effectively represents approximately 44% of the issued equity of BALtrans.

BALtrans, is listed on the Hong Kong Stock Exchange (“HKSE”) and is one of the largest Asia based freight forwarding and logistics companies with an international network spanning all major cities in Asia, North America, Europe, Africa and Middle East and has an annual revenue of approximately A$690m.

Toll Managing director, Mr Paul Little said “BALtrans is a key element of our Asian growth strategy and provides a global freight forwarding network from its strong Asian base. The inclusion of BALtrans with the Toll Group based on historicals would result in annual revenues outside Australia and New Zealand of in excess of A$ 1.2 billion which is over 20% of our revenues, excluding Virgin Blue”, “Toll and BALtrans have highly complementary businesses in terms of strategy, focus, capability, customers and industry segments with strong growth-oriented cultures. The companies will be able to leverage each other’s capabilities and customers to further accelerate growth both regionally and globally within the freight forwarding market.” Mr Little said.

Mr Anthony Lau, one of the three founding shareholders of Baltrans and Executive Chairman said, “the founding shareholders have provided irrevocable undertakings to tender into Toll‘s offer. I believe that Toll is an ideal owner of BALtrans to enhance its growth momentum, both regionally and globally strengthening the company’s position as a leading global freight forwarder”.

The Toll bid of HK$7.60 per share which increases to HK$7.75, should acceptances of 90% or greater on a fully diluted basis be received, would value BALtrans on an enterprise basis at about A$365 million. Toll will fund the acquisition by existing debt facilities and expects it to be earnings per share accretive for Toll in its first full financial year.

“The bid represents a premium of 41% over the pre announcement trading price, reflecting Toll’s desire to take control of such a quality business network.” said Mr Little. A high level profile of the BALtrans business is attached together with summary details of the transaction.